Business, 04.11.2020 17:50 itsgiovanna

In obtaining an understanding of an entity's internal control in a financial statement audit of a nonpublic company, an auditor is not obligated to:

Answers: 1

Show answers

Answers

Answer from: miami158999

Complete Question:

In obtaining an understanding of an entity's internal control in a financial statement audit of a non-public company, an auditor is not obligated to:

Group of answer choices

A. Determine whether the control activities have been placed in operation.

B. Perform procedures to understand the design of the internal control policies.

C. Document the understanding of the entity's internal control components.

D. Search for significant deficiencies in the operation of the internal control.

Explanation:

Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.

The main purpose of internal controls is to guarantee that loss is eliminated in an organization, as there's a reliable and an accurate accounting system.

Basically, an internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency.

Hence, internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.

In obtaining an understanding of an entity's internal control in a financial statement audit of a non-public company, an auditor is obligated to:

I. Determine whether the control activities have been placed in operation.

II. Perform procedures to understand the design of the internal control policies.

III. Document the understanding of the entity's internal control components.

Answer from: Quest

General education? that is the only one i could think of.

Answer from: Quest

answer; sensory adaptation;

Another question on Business

Business, 21.06.2019 20:20

Accounts receivable arising from sales to customers amounted to $40,000 and $55,000 at the beginning and end of the year, respectively. income reported on the income statement for the year was $180,000. exclusive of the effect of other adjustments, the cash flows from operating activities to be reported on the statement of cash flows is

Answers: 2

Answer

Business, 22.06.2019 17:50

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.

Answers: 3

Answer

Business, 22.06.2019 21:30

Which of the following is one of the five fundamental questions? which products will be in scarce supply and which in excess supply? who should appoint the head of the central bank? how much should society save? correct what goods and services will be produced?

Answers: 1

Answer

Business, 23.06.2019 02:00

1. how much money did selfridge spend on advertising before the store’s opening? 2. explain what shopping was like in london during the early 1900s. how does this differ from the modern shopping experience? 3. what was the role of a floorwalker in 1900s london? 4. what inspired selfridge to ensure that customers in his store could browse at their leisure? do you need the links to the video?

Answers: 1

Answer

You know the right answer?

In obtaining an understanding of an entity's internal control in a financial statement audit of a no...

Questions